New Zealand’s abundant sunshine makes solar an obvious choice for a sustainable and cost-effective energy future. While we’re seeing exciting growth in solar, sustained government support is crucial to truly accelerate the rollout of both residential and commercial solar across Aotearoa.
We recently saw a clear sign of growing interest from the top, when the Right Honourable Simon Watts oversaw a recent solar installation in Mt Eden. Let’s explore how proactive solar governance can fast-track solar adoption and illuminate a brighter future for New Zealand.
Support from the Top Down
Financial incentives are a powerful tool to encourage solar adoption. While Australia’s solar drive began with subsidies, there’s still a lot that can be done here in NZ right now.
Green Loans
Green loans are a great example of a financial incentive that’s already making a difference for Kiwis. These loans, offered by several major banks, provide low-interest or interest-free financing for eligible home improvements, including solar panel installations. They make the initial investment more manageable and attractive, helping more people access the long-term benefits of solar energy.
Streamlining Processes
While green loans are aiding solar adoption, bureaucratic hurdles remain. For example, permitting for residential systems in New Zealand can take six weeks or more (compared to 72 hours in Australia), and commercial permits up to three months.This extended timeframe represents a considerable barrier to solar uptake, emphasising the necessity for more efficient regulatory procedures.
Addressing System Size Limitations
Concerns about grid capacity lead to limits on solar system sizes. For example, a desired 500kW system might be capped at 300kW. Therefore it is essential to partner with a solar installer capable of designing solutions that maximise your savings, even in the presence of system size limitations.
Fairer Buyback Rates
Current energy buyback rates are unequal, with gentailers paying NZ consumers 8 cents per kWh but charging 33 cents. In June, the Government announced a review of how solar users are compensated for exporting energy, a change that could lead to fairer outcomes over time.
Future-proofing Our Energy
The advantages of embracing solar power extend far beyond individual savings. Solar energy delivers profound benefits that contribute to a brighter future for all of New Zealand.
Boosts Energy Independence: We reduce our reliance on imported fuels and become more resilient to volatile global energy markets.
Enhances Grid Stability: Decentralising power generation makes our national energy infrastructure more robust.
Creates Local Jobs: The solar industry drives economic growth through new opportunities in installation, maintenance, manufacturing, and innovation.
Reduces Carbon Emissions: Solar plays a vital role in meeting our national environmental targets and securing a healthier planet for future generations.
Learning from Across the Ditch: Australia’s Solar Success Story
Look across the Tasman, and Australia offers a compelling case study. It’s one of the global leaders per capita in solar adoption, largely due to consistent and robust government and state-level incentives. Initiatives like Small-scale Technology Certificates (STCs), which effectively reduce the upfront cost of residential systems, have been instrumental in driving adoption.
Various state-based rebate programmes, feed-in tariffs, and interest-free loans have also spurred innovation and made solar an increasingly affordable choice for Australians. Some programmes even offer free installations or significant discounts for eligible households, showcasing how targeted support broadens access and accelerates the transition to clean energy.
The Path Forward for New Zealand
Proactive leadership from the top down will help to accelerate solar adoption in New Zealand. By learning from our neighbours and implementing well-structured incentives and streamlined policies, we can significantly accelerate the adoption of solar, creating a more resilient, sustainable, and economically vibrant energy future. With the right support, the future of energy in New Zealand truly is obvious – bright, clean, and powered by the sun.